Lazydays Holdings, Inc. Provides Preliminary Third Quarter Results

Rhea-AI Summary

Lazydays Holdings, Inc. (LAZY) reported preliminary results for Q3 2021, highlighting a revenue of $318.7 million, a 48% increase year over year. Net income surged to $30.2 million, an increase of $26.5 million from Q3 2020. Adjusted EBITDA reached a record $41.7 million, up 119%. RV unit sales rose 35% to 3,496 units. Despite a cash balance decline to $67.0 million, customer demand remains strong, and the company expanded its dealership network with 3 new locations.

Positive

• Revenue increased by $103 million, or 48%, compared to Q3 2020.
• Net income rose to $30.2 million, an increase of $26.5 million from Q3 2020.
• Adjusted EBITDA reached $41.7 million, increasing 119% year-over-year and setting an all-time quarterly record.
• RV unit sales increased by 35% to 3,496 units compared to Q3 2020.
• Customer demand remained strong, supporting overall growth.

Negative

• Cash balance decreased to $67 million, down $14.7 million from Q3 2020.

TAMPA, Fla., Oct. 14, 2021 /PRNewswire/ -- Lazydays Holdings, Inc.  ("Lazydays" or the "Company") (NasdaqCM: LAZY) provided preliminary results for the quarter ended September 30, 2021. It is important to note that results are preliminary, unaudited, have not been subject to a quarterly review and should be read in conjunction with the Company's annual report on Form 10-K/A for the year ended December 31, 2020, which the Company filed on June 25, 2021, and its quarterly report on Form 10-Q for the quarter ended June 30, 2021, which the Company filed on August 6, 2021.  Preliminary Revenue for the third quarter ended September 30, 2021 is $318.7 million, up $103.0 million versus the third quarter 2020, and net income is $30.2 million, up $26.5 million versus the third quarter 2020 (restated). 

"We are very pleased to set a new all-time quarterly EBITDA record for Lazydays, surpassing the $41.3 million record we set in the second quarter of this year," stated William P. Murnane, Chairman and CEO of Lazydays. "More importantly, our growth strategy continues to drive strong year over year results that outpace the market.  Our revenue is up 48% and EBITDA has more than doubled versus what was then a strong third quarter 2020.  We are very proud of the Lazydays team for these outstanding accomplishments," commented Murnane. 

Preliminary key metrics for the quarter are provided below, along with a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income.

Quarter ending September 30, 2021 Preliminary Results:

• Adjusted EBITDA increased 119% to $41.7 million versus $19.0 million in the third quarter of 2020. This is an all-time quarterly adjusted EBITDA record for Lazydays, surpassing the previous record of $41.3 million set in the second quarter of 2021.
• RV unit sales increased 35% to 3,496 units versus 2,595 units in the third quarter of 2020.
• RV unit sales increased 81% vs. 1,935 units in the third quarter of 2019.
• Total Revenue increased 48% to $318.7 million compared to $215.7 million in the third quarter of 2020.
• Total Revenue increased 101% compared to total revenue of $158 million in the third quarter of 2019.
• The Company ended the quarter with a cash balance of $67.0 million, down $14.7 million from September 30, 2020 and $3.5 million from December 31, 2020.
• Dealership inventory levels increased slightly during the quarter, but remain well below historical and target levels.
• Customer demand remained strong during the quarter.
• The Company's growth pipeline continues to be robust and the Company added 3 dealerships to its network in the third quarter of 2021 as a result of its acquisition of B. Young RV in Oregon and Washington and Burlington RV in Wisconsin.

ABOUT LAZYDAYS RV
As an iconic brand in the RV industry, Lazydays, The RV Authority, consistently provides the best RV sales, service, and ownership experience, which is why RVers and their families become Customers for Life. Lazydays continues to add locations at a rapid pace as it executes its geographic expansion strategy that includes both acquisitions and greenfields.

Since 1976, Lazydays RV has built a reputation for providing an outstanding customer experience with exceptional service excellence and unparalleled product expertise, along with being a preferred place to rest and recharge with other RVers. By offering the largest selection of RV brands from the nation's leading manufacturers, state-of-the-art service facilities, and thousands of accessories and hard-to-find parts, Lazydays RV provides everything RVers need and want.

Lazydays Holdings, Inc. is a publicly listed company on the Nasdaq stock exchange under the ticker "LAZY."

Forward–Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.  Forward-looking statements describe Lazydays future plans, projections, strategies and expectations, including statements regarding Lazydays' expectations for future operating results, its expectations regarding the impact of its acquisition of its recently acquired dealerships in Phoenix, Arizona, Elkhart, Indiana, and Burns Harbor, Indiana, Marysville, TN, Portland, Oregon, Vancouver, Washington and Milwaukee, Wisconsin; and its greenfield start-ups near Houston, Texas and Nashville, Tennessee, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Lazydays. Actual results could differ materially from those projected due to various factors, including economic conditions generally, conditions in the credit markets and changes in interest rates, conditions in the capital markets, the global impact of the pandemic outbreak of coronavirus (COVID-19) and other factors described from time to time in Lazydays' SEC reports and filings, which are available at www.sec.gov. Forward-looking statements contained in this news release speak only as of the date of this news release, and Lazydays undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances, unless otherwise required by law.

Non-GAAP Financial Measure
Adjusted EBITDA. Adjusted EBITDA is a not a U.S. Generally Accepted Accounting Principle ("GAAP") financial measure, but it is one of the primary non-GAAP measures management uses to evaluate the financial performance of the business. Adjusted EBITDA is also frequently used by analysts, investors, and other interested parties to evaluate companies in the recreational vehicle industry. The Company uses Adjusted EBITDA to supplement GAAP measures of performance as follows:

• as a measurement of operating performance to assist in comparing the operating performance of the Company's business on a consistent basis, and remove the impact of items not directly resulting from the Company's core operations;
• for planning purposes, including the preparation of the Company's internal annual operating budget and financial projections;
• to evaluate the performance and effectiveness of the Company's operational strategies; and
• to evaluate the Company's capacity to fund capital expenditures and expand the business.

The Company defines Adjusted EBITDA as net income excluding depreciation and amortization of property and equipment, non-floor plan interest expense, amortization of intangible assets, income tax expense, stock-based compensation, transaction costs and other supplemental adjustments which for the periods presented includes LIFO adjustments, severance costs and other one-time charges, PPP loan forgiveness, and loss on sale of property and equipment.

The Company believes Adjusted EBITDA, when considered along with other performance measures, is a useful measure as it reflects certain operating drivers of the business, such as sales growth, operating costs, selling and administrative expense and other operating income and expense. The Company believes Adjusted EBITDA can provide a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of financial performance and prospects for the future. While Adjusted EBITDA is not a recognized measure under GAAP, management uses this financial measure to evaluate and forecast business performance. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations, or a measure comparable to net (loss) income as it does not take into account certain requirements such as non-recurring gains and losses which are not deemed to be a normal part of the underlying business activities.

The Company's measure of Adjusted EBITDA is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation. The Company compensates for these limitations by using Adjusted EBITDA as only one of several measures for evaluating business performance. In addition, capital expenditures, which impact depreciation and amortization, interest expense, and income tax expense, are reviewed separately by management.

A reconciliation of preliminary net income to preliminary EBITDA and preliminary Adjusted EBITDA for the periods presented follows:

News Contact:
+1 (813) 204-4099
 investors@lazydays.com 

		Three Months Ended September 30,
		2021		2020 (Restated)
EBITDA
Net  income		$                             30,213		$                               3,700
Interest expense, net*		2,006		1,749
Depreciation and amortization of property and equipment		2,099		1,712
Amortization of intangible assets		1,618		1,048
Income tax expense		8,082		4,184
Subtotal EBITDA		44,018		12,393
Floor plan interest		(414)		(293)
LIFO adjustment		(655)		(1,431)
Transaction costs		678		233
Loss on sale of property and equipment		133		-
Change in fair value of warrant liabilities		(2,162)		7,899
Stock-based compensation		132		219
Adjusted EBITDA		$                             41,730		$                             19,020
* Interest expense includes $1,201 and $1,189 relating to finance lease payments for the three months ended September 30, 2021 and 2020, respectively.  Depreciation on leased assets under finance leases is included in depreciation expense and included in net income.  Operating lease payments are included as rent expense and included in net income.
		Three Months Ended September 30,
		2021		2020 (Restated)
EBITDA margin
Net income margin		9.5%		1.7%
Interest expense, net		0.6%		0.8%
Depreciation and amortization of property and equipment		0.7%		0.8%
Amortization of intangible assets		0.5%		0.5%
Income tax expense		2.5%		1.9%
Subtotal EBITDA margin		13.8%		5.7%
Floor plan interest		-0.1%		-0.1%
LIFO adjustment		-0.2%		-0.7%
Transaction costs		0.2%		0.1%
Loss on sale of property and equipment		0.0%		0.0%
Change in fair value of warrant liabilties		-0.7%		3.7%
Stock-based compensation		0.0%		0.1%
Adjusted EBITDA		13.1%		8.8%
Note:  Figures in the table may not recalculate exactly due to rounding.

 

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SOURCE Lazydays Holdings, Inc.

FAQ

What were Lazydays Holdings' preliminary results for Q3 2021?

Lazydays reported preliminary Q3 2021 revenue of $318.7 million, up 48% year over year, and a net income of $30.2 million.

How much did Lazydays Holdings increase its revenue compared to Q3 2020?

Lazydays' revenue increased by $103 million, or 48%, compared to Q3 2020.

What is the adjusted EBITDA for Lazydays Holdings in Q3 2021?

The adjusted EBITDA for Q3 2021 was $41.7 million, representing a 119% increase from the previous year.

How many RV units did Lazydays sell in Q3 2021?

Lazydays sold 3,496 RV units in Q3 2021, a 35% increase compared to Q3 2020.

Did Lazydays Holdings expand its dealership network in Q3 2021?

Yes, Lazydays expanded its dealership network by adding 3 new locations in Q3 2021.